Saudi Arabia: A Dispute Resolution: Litigation Overview

Navigating Saudi Commercial Litigation: Enforcement, Procedure, and Critical Timing Traps

Saudi Arabia’s legal framework has modernised significantly with the 2012 Enforcement Law, the 2020 Commercial Courts Law (CCL), and the 2023 Civil Transactions Law (CTL). For in-house counsel managing Saudi disputes, understanding how these laws interact – and where they create procedural traps – is essential to effective risk management.

Enforcing foreign judgments: the Enforcement Law Framework

The 2012 Enforcement Law (Royal Decree No M/53) governs recognition of foreign judgments through six mandatory conditions under Article 11:

• reciprocity between Saudi Arabia and the issuing jurisdiction;
• finality in the home jurisdiction;
• proper jurisdiction of the issuing court;
• due process – adequate notice and defence opportunity;
• public order and Sharia compliance; and
• no conflicting Saudi judgment on the same dispute.

Reciprocity is typically established through treaty. Saudi Arabia is party to the Riyadh Arab Agreement for Judicial Cooperation (1983) (“Riyadh Convention”) covering 18 Arab states, and bilateral treaties such as the Treaty between China and Saudi Arabia on Judicial Assistance and Cooperation in Civil and Commercial Matters (“China Treaty”), which was subsequently approved by a Standing Committee of the Chinese Congress on 30 April, 2025. However, treaty access does not guarantee swift enforcement. Proceedings routinely take three-to-six months, during which debtors may encumber assets.

Documentation requirements vary by jurisdiction. Article 11(3) requires a “certificate of effectiveness” submitted through the Najiz digital platform – a document not issued by all foreign courts. For example, Chinese courts do not issue this certificate, creating practical obstacles for Chinese judgments despite treaty obligations. For non-treaty jurisdictions, enforcement is generally unavailable unless reciprocal arrangements exist.

Sharia compliance review remains a substantive filter. Enforcement judges independently assess whether judgments violate public order or Sharia principles. Interest components are frequently reduced or eliminated. It is therefore advisable to separate the principal sum from any interest in your application and to prepare alternative damage calculations based on “liquidated damages” principles recognised under Saudi law.

Commercial Courts Law: procedure and the 15-day notice trap

The Commercial Courts Law (Royal Decree No M/93, 2020) modernised dispute resolution but introduced critical procedural requirements. Article 19 requires claimants to notify defendants in writing at least 15 days before filing, demanding satisfaction of the claim. This requirement applies to claims exceeding SAR100,000. Exemptions include penalty cases, government entity cases, low-value claims, and urgent requests – but “urgent” is narrowly interpreted and does not include impending limitation deadlines.

Article 24 of the CCL imposes a five-year limitation period from the date the cause of action arose. For claims arising before the CCL’s effective date (16 June 2020), the period runs from that date, making the final deadline 22 April 2025 for pre-2020 claims.

If a claim is within 15 days of the five-year limitation expiry, the legal notice requirement creates an impossible procedural bind. The claim will expire before the notice period elapses.

While Saudi courts lack a statutory urgent enforcement mechanism for provisional measures until the draft arbitration law takes effect, filing any protective application before the court can interrupt the limitation period and preserve the claim. Alternatively, one can obtain a written acknowledgement from the debtor, which extends the limitation under Article 24 of the CCL.

Civil Transactions Law: limitation principles

The 2023 CTL imposes strict limitation periods with four key principles:

• Rights Do Not Extinguish: Article 295 clarifies that prescription does not extinguish the underlying right – only the ability to sue is lost. This preserves negotiation leverage but not judicial enforcement.
• Hijri Calendar Calculation: All limitation periods use the Islamic Hijri calendar (354–355 days/year), accelerating expiration by approximately 11 days annually compared to Gregorian calculations.
• No Retroactivity for Running Periods: If limitation commenced before 16 December 2023 (CTL effective date), pre-2023 rules apply. Transitional claims require careful regime analysis.
• Mandatory Non-Modification: Article 305 prohibits contractual modification of limitation periods. Extension or reduction clauses are void.

Specific periods include:

• general non-hearing bar: ten years (Article 295);
• warranty defects: 180 days from delivery (Article 344);
• unjust enrichment: three years from creditor awareness (Article 159); and
• fraudulent disposition: one year from awareness; ten years absolute (Article 188)

On the horizon: draft arbitration law developments

Following a resolution of the Council of Ministers in July 2025, a new draft arbitration law has been published in October 2025 (the “Draft Law”) to modernise the country’s arbitration framework.

The Draft Law proposes a 15-day urgent enforcement mechanism for arbitral tribunal-ordered provisional measures. Under current law, no statutory procedure exists for rapid court enforcement of such measures, creating asset dissipation risks during enforcement delays.

The Draft Law remains under consultation and is not yet in force. We are monitoring its progression and will assess practical implementation once enacted. If adopted, this would address the urgent relief gap in Saudi litigation – but enforcement courts will need to develop procedural rules for its operation.

Conclusion

Saudi Arabia’s litigation framework offers viable enforcement pathways, but procedural precision is non-negotiable. The 15-day pre-filing notice requirement creates a critical timing trap for claims nearing limitation. Foreign judgments face treaty-specific documentation barriers. Time bars are calculated in Hijri terms, non-modifiable, and result in dismissal if raised at the first hearing. In-house counsel must calendar limitations in Hijri terms, secure debtor acknowledgements when deadlines approach, and treat enforcement planning as a contract negotiation priority.